Politicized industrial policy sometimes works well and sometimes not. Often in unintended ways.
In Japan, the cost of vehicle inspection / registration (Shaken, sometimes called locally 'the Toyota tax') increases dramatically for older cars. The fees can be $1500 for two years. This of course encourages the sale of new cars, but also drives down the resale value of used cars in Japan to almost nothing. The Japanese regulations are the only reason there's an economically viable trade in Z32 JDM engines and front clips in the US.
Not to mention, in truth, there's been plenty of US regulation for a long time as well. Those same low value used cars in Japan are exported all around the world. But not to here because of US regulations in the name of 'safety'. Such regulations just coincidentally would seem to protect the markets of our new car sellers, domestic and foreign.
14:27:15 05/20/09
